Builder-to-Builder Exemptions

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Builder-to-Builder Exemptions

A “subdivision” is defined as “improved or unimproved land” divided into five or more lots or parcels for the purpose of sale, lease, or financing… Any person or entity who owns five or more lots in a subdivision is considered a “Subdivider.” Subdividers must get a Final Public Report before offering subdivision lots for sale to the public.

There are several exemptions to this requirement, where the subdivision does not need to be reviewed by the Department of Real Estate:

lots in a standard subdivision (No Common Area Lettered Lots), for sale with completed residences, that are in an incorporated city

lots that are zoned for only commercial, professional, or industrial

public agencies such as a City, County or State agency, to name a few.

Another exemption, that applies to specific types of sales, within the industry, is commonly referred to as the “Builder-to-Builder exemption.” To qualify for the exemption, the sale must consist of five or more lots in a subdivision, which are sold to any person who acquires the lots “for the purpose of engaging in the business of constructing residential buildings, or the purpose of resale of the lots” (paraphrased). In these cases, the builder is exempt from DRE Review.

In other words, the sale of 5 or more lots from the first “builder/developer” to a second “builder” or “sophisticated buyer” who will build and sell homes on the lots does NOT have to go through the public report process. However, the second “builder” will need to obtain a Final Subdivision Public report before selling to the public.

The Builder-to-Builder exemption applies if there is a purchase agreement in place with a take-down schedule, as long as the contract proposes to sell five or more lots.

Newsletter

Morgan Myers

Morgan joins our team with over 5 years experience in real estate coordination and exterior home remodeling, bringing a keen eye for accuracy to her new role as Budget Assistant. Morgan is currently obtaining her bachelor’s degree in data analytics and describes herself as highly logical, making her the perfect addition to the team.

Victoria Walter

Victoria joined our Team in April, 2018 as Administrative Assistant. She brings over 5 years of administrative experience to the table with expertise in correspondence, data management systems, and executive support. Victoria directly handles financial matters such as client billing and the reception duties in the office. She is the friendly voice that will most likely greet you when you call the CBS office.

Angel Brune

Angel brings several years of Retail and Hospitality Management and a focus on service. He is graduating from Fresno State with a major in Business Administration with an emphasis in Real Estate. He brings a positive attitude, energy and an eye for detail to the CBS team. Angel works closely with our Subdivision Consultants to ensure our projects are on track.

Fun Facts

I love baseball, especially Dodger baseball! My wife and I try to go to at least 4 or 5 games a year.

Cooking at home and trying new recipe is a great hidden aspect about me. I’m always watching the Food Network and trying to get new ideas.

I’m a technology enthusiast. In my free time I listen to podcasts about the newest technology and gadgets of the day. It amazes me all of the innovations that are made on a daily basis! What will they think of next?

Recently obtained my Bachelors in Business Administration from CSU Fresno. I am proud that I was the first person in my family to graduate from college.

Lisa Chang

Subdivision Consultant

Lisa joined the CBS team in 2016. She has eight years of experience in construction project management and administration. She is a proven task master in performing project data research quickly and her filing packages are always complete. Lisa’s diligence contributes to overall success of the Bureau of Real Estate process, making it easier and more efficient for our clients.

Fun Facts

I’m a scaredy cat when it comes to amusement parks and roller coasters because of heights and the speed, but I am open to adventure activities such as parasailing, zip lining, etc. I was able to scratch off parasailing and snorkeling on my bucket list during my Hawaii trip this year and excited to cross off zip lining this year.

Valerie Hinkle

Budget Preparation

Valerie brings over 10 years of construction administration to the CBS team. She is very familiar with construction detailing and costing and is a perfect fit for our Budget preparation department. Her understanding of construction processes and cost requirements lends the ability to review project take-offs and relate them to start up budgeting with the knowledge of a senior budget preparer.

John Ford

With a career in home design, development and construction, John is more than qualified to interpret the plans and specifications for subdivision budgeting and reserve studies. John is a trained professional, who is capable of creating estimates for construction costs, as well as estimating component and materials lifetime.

Elvira Cruz

Elvira brings valuable experience and knowledge after a career in the Escrow and Title Industry. With 15 years in Escrow, she understands the sales process and is more than familiar with the documents involved in transactions. Elvira works well under pressure and in is detail oriented while understanding that timing is essential to our clients. She utilizes these skills and qualities into every project.

Fun Facts

Guilty Pleasure – Gummies…anything gummy. I buy box of fruit snacks and I don’t share with my kids. I know so bad, but they are so good.

Annual tradition – We host Easter at our home every year, it’s a lot of work, but I love. This past year I created a life size board game in my yard, with questions and dice… we had fun. Next year, I’m thinking of maybe putting together a Family Feud game… wish me luck!!

Vice President

BRE Processing / Customer Service

With a military background and experience in law enforcement, Scott is keenly sensitive to compliance with legal requirements. Specializing in the BRE Process and Reserve Studies, Scott has handled full caseloads of projects that range from small parcel maps to large multi-phase condominiums. Scott has completed his MBA, and has been instrumental in moving our services into a new era of service through technology.

Fun Facts

President

Alice has over 35 years of experience in working with subdivisions. Her background includes title, escrow, marketing, Budgets and DRE processing. Alice also provides whatever assistance or training is necessary to insure that all of our clients understand the process and requirements for new home sales and HOA start ups. With her years of experience, she is also capable of providing our clients with feedback on the structure of their development.